Selecting The Right Type of Lease
True Lease

A True Lease is another term for a tax lease where, for IRS purpose, the lessee (the customer) claims the entire amount of the lease payment as an operating expense or tax deduction. This type of lease typically provides the lowest monthly payment, and can often be structured to meet the requirements for operating lease treatment.

The following options are available at the end of the lease term:

ü      Replace equipment with the latest technology (and enter into a new lease agreement)

ü    Renew the lease at a monthly amount based on the equipment's fair
     market value and the renewal term

ü   Purchase the equipment at its fair market value

ü      Return the equipment to the lessor